In 2023, Video Games Stumbled And Did Not Secure The Position Of The Largest Entertainment Medium In The UK
For more than ten years, the video game industry has been acknowledged as the UK's foremost entertainment sector. However, with the close of 2023, an industry shift has occurred, as reported by GamesIndustry.biz, which now positions video as the UK's most substantial entertainment medium.
This development is highlighted in a report by the Entertainment Retailers Association (ERA), which represents the interests of retailers in the video, music, and gaming industries. In the last year, the gaming sector generated £4.74 billion in the UK, a 2.9% increase from the previous year. Yet, it was the surge in video content, with a remarkable 10% growth, reaching £4.9 billion in revenue, that catapulted it past games. The proliferation of streaming services, which comprise an overwhelming 89% of the video segment, contributed greatly to this outcome. The music industry posted notable growth as well, with a 9.6% increase, bringing its revenue to £2.2 billion.
The games industry hadn't been outperformed by another entertainment sector since 2012, marking over a decade of dominance until this recent shift.
The ERA report further indicates that digital sales now account for a substantial 92% of total entertainment sales, underscoring the dwindling relevance of physical media. In the video category, the biggest hit of the year was "Avatar: Way of Water," which achieved 560,000 unit sales.